The examples and perspective in this article deal primarily with the United Kingdom and do not represent a worldwide view of the subject. (May 2018) (Learn how and when to remove this template message)
"Buy one, get one free" or "two for the price of one" is a common form of sales promotion. Economist Alex Tabarrok has argued that the success of this promotion lies in the fact that the price actually takes into account the fact that two items are being sold. The price of "one" is somewhat nominal and is typically raised when used as part of a buy one get one free deal. Whilst the cost per item is proportionately cheaper than if bought on its own, it is not actually half price.
Two-for-one promotions were criticised in the United Kingdom in 2014, at a time of concern over food waste. Because many foods under such offers have short shelf lives, customers are more likely to pass the products' use by date.
Supermarkets have also been blamed for contributing to the increase in obesity through buy one, get one free promotions. In 2012, the University of East Anglia's Norwich Business School conducted research into products used in buy one, get one free deals. The results showed that these promotions are aimed towards unhealthy products, such as chocolate, sweets and soft drinks. In 2014, the Department of Health encouraged the industry to develop "responsible" deals, and considered banning two-for-one offers.
Retailers use many promotional offers to increase sales, attract new customers, and keep old customers. Also, some countries have laws requiring products to be sold at full price for a specific period of time before they can be put on offer. Promotional offers are crucial in the retail industry; their many benefits play a large part in increasing sales, profit, and revenue. These promotional offers fall under different categories, and a few are listed below: